Telangana based rural tech start-up, Hesa secured USD 2 Million financing as part of its seed round led by Venture Catalysts. Connecting Bharat with India phygitally, the startup is redefining rural commerce by providing Last Mile Physical & Digital and Social Connect to Rural India. Manish Modi of Mastermind Capital led the funding round at Venture Catalysts (VCats) along with Accelerator Fund, 9Unicorns. The round also saw participation from Inflection Point Ventures, We Founder Circle, Keiretsu Forum, Faad Network, Startup Angels Network and Salil Chakrabarty Innovation Fund.
Co-founded by Vamsi Udayagiri and Hema Nandiraju in 2019, Hesa unifies value chains in rural India by enabling local brands and businesses to come together as a community.
Hesa is the one-stop-solution for Corporates, Agritech & Fintech Start-ups SMEs, Banks and Financial Institutions, Government and NGOs who wish to access 850 million people in rural India, for their Go-to-market and buy-sell propositions including brand promotions and social responsibilities. Further, Hesa’s multidimensional value proposition targets a space that lies at the intersection of India’s fintech sector and agritech sector, projected to be worth USD 84 billion and USD 24 billion, respectively, by 2025.
Considering its multidimensional revenue model bolstered by a diversified portfolio, Hesa is already generating high GMV and profitable margins. Every transaction on Hesa’s platform generates revenue, further supplemented by marketing and service-based income from rural promotions and activations, rural contract staffing, promotions on the Hesa app, etc.
Vamsi Udayagiri, Founder & CEO, Hesa, commented, “Rural commerce continues to be driven by trust, relationships and physical interactions. Adding a layer of digital, unlocks its true potential. It is indeed an opportune time to connect India to Bharat phygitally. I am thankful to all the investors for the trust and support extended to Hesa. This collaboration with marquee investors will go a long way in realizing our vision of enabling equitable life and livelihoods to India’s rural population.”
Dr. Apoorva Ranjan Sharma, Co-Founder & President of Venture Catalysts, added, “Hesa is redefining rural commerce with its community-driven platform and empowering village-level businesses to reach their target audience. It is unlocking access to employment opportunities at scale, thus making small businesses empowered more so during a pandemic-triggered crisis. The company is addressing a market space worth USD 650 billion that is ripe for disruption. As per recent estimates, only 20.26% of the rural population in the country have access to the internet, reflecting the opportunity to onboard 80% of rural users on the digital wagon. We are delighted to support a high-potential, socially-driven brand such as Hesa and wish them continued success.”
Mr. Neeraj Tyagi- CEO & CO-Founder, We Founder Circle commented, “The rural India holds immense potential when it comes to B2B2C business opportunities. Hesa has not only cracked it but have successfully sustained it at scale.”
Commencing its operations from April 2020, Hesa has embarked on a high growth trajectory, accruing gross revenue of USD 4 million to date while witnessing a 15% average monthly growth and a 65% retention rate. Hesa has already connected over 65 brands to 600,000 rural customers through 8000 Village Level Entrepreneurs, the ‘Hesaathis,’ in around 5000 Indian villages.
The investment will support and accelerate Hesa’s plans to scale up operations in Andhra Pradesh, Telangana and Karnataka and also to scale the Technology platform. The team is working towards on-boarding 50,000 ‘Hesaathis’ in the next nine months. Hesa is on a journey to change India’s rural ecosystem which will have a profound impact in the next decade.